Renting of Immovable Property to Educational Institution

[Kushal Mishra]

Dear All,

A classic case has arrived just wish to get insight on "Taxability of renting of Immovable Property (buildings) given on rent to Educational Institution in order to set up hostel facility for their students".

What are your thoughts whether the rental receipt from educational institution for building which they are using as hostel will be chargeable to tax in the hand of Owner of the building. Total Rent Charged is more than ₹ 1 Crore Approx.

AI Summary

Taxability of rental services: letting property for hostel use qualifies as taxable supply absent a specific exemption.
Renting immovable property to an educational institution for use as a student hostel qualifies as a supply in the course or furtherance of business and is taxable under GST absent a specific exemption; the residential unit exemption does not apply to hostel use. A service tax-era decision (Singhania Enterprises v. Commissioner of Central Excise, Raipur) is cited as supportive authority.